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The impact of the household decision environment on fuel choice behavior

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  • van der Kroon, Bianca
  • Brouwer, Roy
  • van Beukering, Pieter J.H.

Abstract

Consumer preferences for fuels and alternative cookstove technologies in Kenya are examined, focusing on household internal and external determinants driving choice behavior in a choice experiment. The potential for a transition towards cleaner and more efficient fuels and technologies is assessed by zooming in on three fuel-stove combinations. We find substantial demand and positive willingness to pay for the fuel-stove combinations in three locations representing different decision environments. Demand is significantly higher in the peri-urban and the resource abundant rural location than in the resource scarce rural location. The presence of better developed consumer markets for fuels in these locations functions as an important driver for cookstove adoption. Although charcoal and ethanol stoves are preferred over improved firewood stoves, continued firewood usage is expected. Energy switching behavior cannot be substantiated. Instead, energy stacking is more likely, where charcoal and ethanol add to and extend a household’s energy portfolio.

Suggested Citation

  • van der Kroon, Bianca & Brouwer, Roy & van Beukering, Pieter J.H., 2014. "The impact of the household decision environment on fuel choice behavior," Energy Economics, Elsevier, vol. 44(C), pages 236-247.
    • Handle: RePEc:eee:eneeco:v:44:y:2014:i:c:p:236-247
    DOI: 10.1016/j.eneco.2014.04.008
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    More about this item

    Keywords

    Choice experiment; Improved cookstove; Consumer behavior; Energy ladder; Fuel switching;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand

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